Is Beyond Meat beyond hope?

Market Morsel

Beyond Meat share price has been under pressure since the middle of 2019. After the initial public share offering in May 2019 the share price rallied strongly, rising by a whopping 250% as the hype around plant based meats caught everyones attention. However, over the years the financial reality has set in.

Despite increasing sales Beyond Meat’s operating profit has slipped disastrously into negative territory. Currently Beyond Meat shares are trading at US$18.77, around 72% under their opening share price at the float and 92% down on their peak price of US$234.90.

Beyond Meat have just released their full year results for 2022 and these highlight that their woes aren’t yet over. During 2022 sales dropped by 10%, down from $US464.7 million in 2021 to $US418.9 million in 2022. However in more concerning developments, their operating losses grew by 92% from a loss of $US179.7 million in 2021 to a loss of $US342.8 in 2022.

It is reported that for every one dollar in sales it costs Beyond Meat around $US1.8 to produce their fake meat item, not a very sustainable model at all.